Experiencing MIS Tenth Edition Chapter 1 PDF

Experiencing MI S Tenth Edition Chapter 1 The Importance of MI S Copyright © 2023, 2021, 2019 Pearson Education, Inc. All Rights Reserved  Who is eHermes? 5-year-old , privately owned company Provides...

Experiencing MI S Tenth Edition Chapter 1 The Importance of MI S Copyright © 2023, 2021, 2019 Pearson Education, Inc. All Rights Reserved  Who is eHermes? 5-year-old , privately owned company Provides mobile shopping using self-driving vehicles “eBay on wheels” Revenues of $8M per year CEO / Co-founder – Jessica Ramma Victor Vazques – Co-Founder - COO Kamala Patel – automation SME Challenges – Path to growth (i.e. work with Walmart / Amazon?) – High expense of systems development – Complexity of inventory tracking system – Associate has to “ride along” Copyright © 2023, 2021, 2019 Pearson Education, Inc. All Rights Reserved Amanda Gets Fired! 6-month employee – business degree in info systems Fired by Victor Amanda – Worked “hard” – 45+ hours per week – Didn’t want to bother senior staff – Developed reports, but didn’t show anyone – Didn’t want to waste money by just throwing out ideas Victor – Not demonstrating teamwork – Needs to develop ideas through feedback/iteration – Start-up – can’t afford non-performers – She needs to be proactive and experiment Copyright © 2023, 2021, 2019 Pearson Education, Inc. All Rights Reserved “But today, they’re not enough.” Amanda Lacks Skills eHermes Needs: 1. Abstract Reasoning Skills. 2. Systems Thinking Skills. 3. Collaboration Skills. 4. Experimentation Skills. Copyright © 2023, 2021, 2019 Pearson Education, Inc. All Rights Reserved What Do Employers Want? Self starter, Don’t wait to be told what to do. Team worker – Develops ideas with others. – Ask questions. – Pulls more than their own weight. Soft Skills (non-technical skills) – Teamwork, communication, leadership, adaptability, verbal skills What should the employee expect? – Direction – Feedback Copyright © 2023, 2021, 2019 Pearson Education, Inc. All Rights Reserved How Can I Attain Job Security? Moore’s Law, Metcalfe’s Law, and Kryder’s Law – Driving data processing, storage, communications costs to essentially zero. Any routine skill can, and will, be outsourced to lowest bidder. Rapid technological change and increased international competition: – Requires skills and ability to adapt. – Favors people with strong non-routine cognitive skills. – Message: Develop strong non-routine cognitive skills. Copyright © 2023, 2021, 2019 Pearson Education, Inc. All Rights Reserved What is a Marketable Skill? Examples of Critical Skills for Nonroutine Cognition Skill Example Amanda’s Problem at eHermes Abstract Reasoning Construct a model or representation. Hesitancy and uncertainty when conceptualizing a method for using AI and machine learning. Systems Thinking Model system components and show Inability to model eHermes how components’ inputs and outputs operational needs. relate to one another. Collaboration Develop ideas and plans with others. Unwilling to work with others on Provide and receive critical feedback. work-in-progress. Ability to Experiment Create and test promising new Fear of failure prohibited discussion alternatives, consistent with available of new ideas. resources. Copyright © 2023, 2021, 2019 Pearson Education, Inc. All Rights Reserved  How Can MI S Help You Learn Non- Routine Skills? Abstract Reasoning – Ability to make and manipulate models. – Learn to use and construct abstract models. Systems Thinking – Ability to model system components, connect inputs and outputs among components to reflect structure and dynamics. – Ability to discuss, illustrate, critique systems; compare alternative systems; apply different systems to different situations. Copyright © 2023, 2021, 2019 Pearson Education, Inc. All Rights Reserved How Can MI S Help You Learn Non- Routine Skills? Collaboration – People working together to achieve a common goal, result, or work product. – Requires giving & receiving critical feedback Ability to Experiment – Make reasoned analysis of an opportunity; develop and evaluate possible solutions. ▪ “I’ve never done this before.” ▪ “But will it work?” ▪ “Is it too weird for the market?” Copyright © 2023, 2021, 2019 Pearson Education, Inc. All Rights Reserved Skills Challenge Fear of failure paralyzes many good people and ideas People resist change Analysis Paralysis – Afraid to act because you might be wrong Does management expect you to be right everytime? – Experience Copyright © 2023, 2021, 2019 Pearson Education, Inc. All Rights Reserved The Digital Revolution Technology fundamentally changing business. Information Age – Production, distribution, control of information primary economic drivers. Digital Revolution – From mechanical/analog devices to digital devices. – Mainframe to Servers – SAN to Cloud – Internet 1.0 to 2.0 – Social Media Almost all companies and jobs use computers now – Even to work at Walmart or McDonalds Copyright © 2023, 2021, 2019 Pearson Education, Inc. All Rights Reserved Technological Change is Accelerating Bell’s Law – Today’s highly successful business could be bankrupt quickly because technology changed and it didn’t. Example: Blockbuster – In 2004, Blockbuster had $5.9B in revenues – In 2010, Blockbuster filed for bankruptcy – High-speed network connections and streaming video changed the competitive landscape Technology creates new companies and industries and makes others obsolete – Streaming services, ATMs/Online banking, Venmo, pay phones – Many companies only exist online (Amazon, Ally Bank, Equifax) – Pure Play vs Brick & Mortar vs Click & Brick Copyright © 2023, 2021, 2019 Pearson Education, Inc. All Rights Reserved Computer Price/Performance Ratio Historical Trend Computer Price/Performance Ratio Decreases Copyright © 2023, 2021, 2019 Pearson Education, Inc. All Rights Reserved Fundamental Forces Changing Technology Fundamental Forces Changing Technology Law Meaning Implications Moore’s Law The number of transistors per square inch Computers are getting exponentially faster. The on an integrated chip doubles every 18 cost of data processing is approaching zero. months. Metcalfe’s Law The value of a network is equal to the More digital devices are connected together. The square of the number of users connected value of digital and social networks is increasing to it. exponentially. Nielsen’s Law Network connection speeds for highend Network speed is increasing. Higher speeds users will increase by 50 percent per year. enable new products, platforms, and companies. Kryder’s Law The storage density on magnetic disks is Storage capacity is increasing exponentially. The increasing at an exponential rate. cost of storing data is approaching zero Performance continues to increase and prices continue to decrease Copyright © 2023, 2021, 2019 Pearson Education, Inc. All Rights Reserved Price of Storage Capacity per G B What was “Y2K”? What did the cost of storage have to do with it? Copyright © 2023, 2021, 2019 Pearson Education, Inc. All Rights Reserved Median Wages and Job Growth by Sector Occupations 2019 Median Wage 2020 Median Wage 2019–29 Percent Job Growth Management $105,660 $109,760 4.7 Computer and mathematical $ 88,340 $ 91,350 12.1 Legal $ 81,820 $ 84,910 5.1 Architecture and engineering $ 81,440 $ 83,160 2.7 Business and financial operations $ 69,820 $ 72,250 5.3 Healthcare practitioners and technical $ 68,190 $ 69,870 9.1 Life, physical, and social science $ 68,160 $ 69,760 4.7 Arts, design, entertainment, sports, and media $ 51,150 $ 53,150 2.5 Education, training, and library $ 50,790 $ 52,380 4.5 Installation, maintenance, and repair $ 46,630 $ 48,750 2.8 Construction and extraction $ 47,430 $ 48,610 4.0 Community and social service $ 46,090 $ 47,520 12.5 Protective service $ 41,580 $ 43,710 2.6 Copyright © 2023, 2021, 2019 Pearson Education, Inc. All Rights Reserved BL S Occupational Outlook 2019-2029 Bureau of Labor Statistics Occupational Outlook 2019–2029 2018 2019 Median 2020 Median Job Growth Job Growth Blank Median Pay Pay Pay (%) 2019–29 (N) 2019–29 Business Managers Blank Blank Blank Blank Blank Marketing Managers $132,620 $135,900 $141,490 6% 18,800 Information Systems Managers $142,530 $146,360 $151,150 10% 48,100 Financial Managers $127,990 $129,890 $134,180 15% 108,100 Human Resources Managers $113,300 $116,720 $121,220 6% 10,400 Sales Managers $124,220 $126,640 $132,290 4% 15,400 Computer and Information Blank Blank Blank Blank Blank Technology Computer Network Architects $109,020 $112,690 $116,780 5% 8,000 Computer Systems Analysts $ 88,740 $ 90,920 $ 93,730 7% 46,600 Database Administrators $ 90,070 $ 93,750 $ 98,860 10% 12,800 Information Security Analysts $ 98,350 $ 99,730 $103,590 31% 40,900 Copyright © 2023, 2021, 2019 Pearson Education, Inc. All Rights Reserved Components of an Information System? Five Components of an Information System Information systems use these five components to produce information Copyright © 2023, 2021, 2019 Pearson Education, Inc. All Rights Reserved Difference between I T and I S Information technology (I T) 1. Products 2. Methods 3. Inventions 4. Standards – I T drives development of new I S. – I T components = Hardware + Software + Data – I S = I T + Procedures + People Copyright © 2023, 2021, 2019 Pearson Education, Inc. All Rights Reserved Management and Use of Information Systems Business professionals need to: – Be able to assess, evaluate, and apply emerging information technology to business – Take active role to ensure systems meet their needs. – Understand how I S constructed. – Consider users’ needs during development. – Learn how to use I S. – Remember ancillary requirements (security, backups). IT and Business areas must work together Companies must adapt to new requirements Copyright © 2023, 2021, 2019 Pearson Education, Inc. All Rights Reserved Defining Information Definitions vary: 1. Knowledge derived from data. – Data = facts or figures – Ex – List of the weights of each student in the class 2. Data presented in a meaningful context. – Ex – average weight of class by sex 3. Processed data, or data processed by summing, ordering, averaging, grouping, comparing, or similar operations. 4. “A difference that makes a difference.” Copyright © 2023, 2021, 2019 Pearson Education, Inc. All Rights Reserved Where is Information? Graph is not, itself, information Graph is data that you, and others, use to conceive information Ability to conceive information from data determined by cognitive skills People perceive different information from same data Same data can be presented many different ways – Number lie and liars use numbers Copyright © 2023, 2021, 2019 Pearson Education, Inc. All Rights Reserved Data Characteristics Needed for Quality Information Accurate – need to be able to rely on it Timely – if late, may be useless if decision already made Relevant – To context – To subject Just barely sufficient – too much data can be overwhelming and waste a lot if time analyzing Worth its cost – data is not free Copyright © 2023, 2021, 2019 Pearson Education, Inc. All Rights Reserved Ethics Guide Young marketing professional – new promotional campaign Presenting results to manager / executive committee – 1) No scale (results look great, but misleading) – 2) Skewed scale (looks great is you don’t read the scale) – 3) To scale (flat growth) All graphs are technically accurate Which one do you present? Copyright © 2023, 2021, 2019 Pearson Education, Inc. All Rights Reserved